City looking to lease private sector space

Instead of going ahead with an agreement that's already been drawn up for the the city to lease space in the Phelps Building on Main Street, city management will ask for proposals to come forward for space.

Instead of going ahead with an agreement that’s already been drawn up for the the city to lease space in the Phelps Building on Main Street, city management will ask for proposals to come forward for space.

At city council’s standing committee meeting Monday night, council told management to go through a more public process to find the space before bringing forward any agreement.

The space is needed for the additional two full-time staff, consultants and training lab required for the overhaul of the city’s computer system that’s being done. The two-year Enterprise Resource Program will be the first time the city’s entire computer system has been upgraded since 1996.

As Rob Fendrick, the city’s director of administrative services, noted Monday night, the city had checked the market for office space open for the lease with a local realtor.

While one site came in over-budget, the 1,000-square-foot portion of the Phelps Building at 107 Main St. came in under budget at $1,200 a month. It also had the benefit of having the city’s fibre lines pass in front of the building, the former home of a large stationery store.

“It’s really hard to imagine the rent getting any better than that,“ Fendrick told council.

Coun. Doug Graham was the first member of council to question management’s approach to lease, with Coun. Dave Austin noting he has heard similar concerns from the public.

“Twelve hundred bucks a month may not seem like a lot to us, but if somebody’s sitting out there with empty space and they have 1,000 square feet and they didn’t get even a shot at it, then I have a problem with that,“ Graham said.

“It’s public money. The process has to be open, transparent and available to everybody.“

While Graham argued the city can’t just start making up its own rules, Fendrick noted the lease fell within the city’s purchasing policy, which doesn’t require public tenders nor proposals for purchases less than $20,000.

At $1,200 per month, the lease would total $14,400 for the year. Over the term of the lease proposed though –17 1/2 months – the lease would total $21,000.

The city has no policy specifically governing lease or rental space because there is usually space available within city facilitates already, Fendrick said.

Going through a realtor provided a form of public process, with the realtor looking at available sites in the city, he added.

Fendrick also told council the city could proceed with advertising that it is seeking the space, though it would cause a delay of at least a month.

“If some small operator out there didn’t have a chance because he didn’t know or she didn’t know, then it’s just not right,“ Graham said.

Fendrick then said management would be happy to put the lease opportunity out to the public. He asked if council wanted to proceed with that, and council members raised their hands in agreement.

Fendrick said in an interview Wednesday morning the city will use its City Page in the local newspapers this week to advertise its need for leased space.

Proposals will be open for a week.

After the deadline, city management will look at the options and a new recommendation will come forward for council to vote on.